Bonds & Security Deposits – Paying Rent | Legal Introduction for Shared Accommodation | Tenancy Agreements
Bonds are pre-tenancy payments made by tenants to NOVARIC Ltd. to provide security against damage to the property or unpaid rent.
A bond, can also be referred to as a Security Deposit, Rental Bond or Security Bond.
It is recommended and common in share accommodation to charge a Bond equivalent to 2 or 4 weeks rent. The maximum Bond allowed varies in each state.
The Bond remains the tenant’s money. While the tenant pays the Bond to NOVARIC Ltd, the money is only held in trust by the company for the tenant. As such, at the end of the lease period the tenant is entitled to a refund for the full Bond amount unless NOVARIC Ltd. can show that any deductions should be made.
To ensure that the Bond payment and holding process is conducted safely and securely, NOVARIC Ltd. possesses a bond deposit for this matters.
Reasons why you should always consider the Bond:
- Penalties – For both tenants and NOVARIC Ltd. there are severe fines for those who fail to conclude the bond correctly.
- Guaranteed Repayment – For tenants, using the system guarantees the repayment of the Bond if there have been no breaches of the residential tenancy agreement.
- Easier to Claim – For NOVARIC Ltd. using the system significantly increases the likelihood of being successful in any claim from the Bond. Courts and Tribunals do not look favourably upon a company who makes a claim on a Bond after not complying with the deposit requirements.
- No Confusion – For both tenants and NOVARIC Ltd. the deposit system is a clear, well understood and transparent process that reduces confusion and the likelihood of disputes arising.
- Efficient – By not working within this well-defined process, both parties risk a longer and more expensive problem.